On the Move: Agents help overcome challenges faced by relocation buyers

By Michelle Sandlin |
May 3, 2013
| Updated: May 3, 2013 8:24pm

Houston is a seller's market, which is really great for sellers, but what about the impact on buyers, especially relocation buyers?

A real estate market is said to be in balance when it has a six-month supply of inventory. As it goes above that mark, it is considered a buyer's market, and as it dips below that mark, it is considered a seller's market.

In Houston the inventory has been hovering around a three-month supply. All the while, Houston is experiencing a surge in relocation to the area, which means that all of these new Houstonians are also looking for a place to live.

In a seller's market, it is the seller who has the upper hand in the negotiation process, while buyers are scrambling and competing to purchase the same properties. Local Realtors say that buyers have to be willing to make cleaner offers, without appraisal contingencies, and often with shorter option periods and higher option fees.

Due to the competition, the buyer also has to be prepared for bidding wars and the possibility that they may have to pay over list price for the house they want.

Meanwhile, Realtors are having to be more creative throughout the process in order to help secure properties for their clients, especially relocation clients, who often have a short time frame in which to locate and execute a contract on a property.

Agents have to educate the buyer to the market and help manage their expectations upfront and during negotiations.

Agents working with relocation buyers in Houston know how quickly properties are selling, and they stress the importance of communicating that to the buyer from the onset.

They tell the buyer that he or she is likely to be one of multiple offers, and what it might take in terms of price and concessions to get the property they choose.

"I have relocation buyers that I am working with right now who are completely onboard," said Mike Bloom Jr., broker/owner of Mike Bloom Properties. "This is their fifth time to be relocated to Houston, and they understand what the market is doing and they are being aggressive with their offers.

"It's just that there's not enough inventory to choose from, and when they finally find a house, there's competition to buy it."

Janice Ratliff, an agent with Bernstein Realty, Inc., says that when she lists a home, she is doing so with the knowledge that it will probably sell right away.

For a relocation buyer who is coming here and planning their buying trip, she says that she really has to educate the buyer to let them know how quickly things are moving in the Houston market.

"We are having to shift gears and are learning to accommodate the seller as opposed to all of the years that the buyer had more of the say-so on the closing date and in getting their dream home," Ratliff said.

Relocation buyers have a limited timeframe to locate and secure a property, so in a low-inventory/high-demand market such as Houston, agents really have to be diligent and get that contract executed as quickly as possible.

Ratliff said that the ability to obtain and use digital signatures has helped her to quickly secure properties for her relocation buyers, regardless of where in the world they may be located at the time.

She recounts a recent story in which her relocation clients were at the airport about to go back overseas, and they were able to digitally sign their contract right there on the spot.

Lori and John Webster of The Webster Group at Better Homes and Gardens Real Estate Gary Greene agree that the lack of inventory presents challenges when trying to secure properties for their relocation clients.

According to the Websters, the biggest challenge right now in assisting people who are moving to Houston is showing poor quality properties. "The good ones are gone before they hit the market, so we have had to utilize our network to find suitable homes before they even hit the market."

Ratliff says that in today's market, "you do get that dream home for your client, but you also feel like you are on this roller coaster."